What Is a Recruiter and How Do They Get Paid? - NerdWallet (2024)

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Recruiters connect individuals with job openings that match their skills and experience.

Recruiters typically specialize in an industry or position, says Johnny Roccia, director of career services at Ama La Vida, a career and life coaching firm. For example, a recruiter might work exclusively in finance or with software salespeople.

While recruiters are mostly associated with white-collar industries, they also work with trade industries, filling positions for mechanics, electricians, carpenters and more.

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What Is a Recruiter and How Do They Get Paid? - NerdWallet (1)

In this article, we’ll break down the different kinds of recruiters, how recruiters are paid and how candidates can find a recruiter to work with in their job search efforts.

What is a recruiter?

Recruiters place qualified candidates in open jobs.

Within their specialty, recruiters are experts on typical job interview questions and sought-after skills. They can provide candidates with valuable insights into a position’s interview process and help candidates highlight specific qualifications employers value.

There are two main kinds of recruiters: agency recruiters and corporate recruiters.

Agency recruiters, sometimes called external recruiters, work for recruiting firms that are hired by a company and tasked with filling that company’s open positions. They're frequently juggling multiple corporate clients and tend to specialize in a specific industry.

Agency recruiters also work with individuals and help place them in open positions.

Corporate recruiters, or internal recruiters, work at a company and fill open roles at that company. A corporate recruiter at Bank of America, for example, works to fill positions at Bank of America.

What do recruiters do?

Think of a recruiter as a “giant networking job,” says Michael Steinitz, a senior executive director at Robert Half, a human resources consulting firm. Good recruiters are plugged into their speciality, have close relationships with companies and professionals and attend industry events.

They also spend time on LinkedIn, looking for qualified candidates who may be a good fit for positions they’re trying to fill, Roccia says.

» MORE: How to turn down a job recruiter

To maintain a good relationship with their client companies, recruiters want to find candidates who really want the job and won’t leave the position shortly after starting, says Lisa Severy, a career advisor at University of Phoenix. That means recruiters are motivated to place candidates in jobs that match their career goals.

“Their best outcome is not just a placement, but a good placement, Severy says.

To do that, recruiters rely on candidates being honest and transparent about their goals and priorities during a phone screen interview or similar introductory call. So, if a candidate is only interested in remote roles or positions that include travel opportunities, they should tell the recruiter.

» MORE: 5 questions to ask a recruiter before an interview

How do recruiters get paid?

When a company hires an external recruiter’s candidate, the company pays the recruiter a percentage of the candidate’s salary, typically between 20% and 30%, says Steinitz, who has more than 20 years’ experience in external recruiting.

Recruiters’ fees might seem like a major additional cost for a company, but budgeting for those fees is a standard part of a company’s financial planning, Steinitz says. Recruiters typically work with sought-after individuals with strong qualifications, so paying a recruiter’s fee, on top of a competitive salary, is worth the long-term benefits the company hopes to gain from the candidate.

That means companies won’t offer candidates lower salaries, or pass over someone using a recruiter just to save money during the hiring process, Steinitz says.

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What Is a Recruiter and How Do They Get Paid? - NerdWallet (2)

Ways to reach out to a recruiter

Experts recommend job searchers reach out to a recruiter on LinkedIn. Most working professionals should have a LinkedIn profile, in large part because of how many recruiters use it to find candidates.

» MORE: How to reach out to a recruiter on LinkedIn

If you don’t have a LinkedIn profile, make one, and follow these tips to make your page stand out.

If you don’t want to use LinkedIn, search online for recruiting agencies that specialize in your industry or profession. It may be harder to find a recruiter’s contact information there, though. You also could look through job listings and see if a recruiters’ contact information is included in any relevant postings.

What Is a Recruiter and How Do They Get Paid? - NerdWallet (2024)

FAQs

How does a recruiter get paid? ›

How do recruiters get paid? When a company hires an external recruiter's candidate, the company pays the recruiter a percentage of the candidate's salary, typically between 20% and 30%, says Steinitz, who has more than 20 years' experience in external recruiting.

How do you tell a recruiter the salary isn't enough? ›

If you're sure that you want to decline, consider saying something like this:"I appreciate the offer and your time, but I can't accept this position at the salary you're offering. If the salary range is something that can be negotiated, please let me know."

What exactly do recruiters do? ›

Recruiters are the connection between job seekers and a company. They help companies fill open roles by finding qualified candidates — people they think have the skills, experience, and ability to do the job well. If you're looking for a job, you might come across a recruiter during your search.

Do recruiters know how much you make? ›

While asking about your current salary is legal under federal law, currently 22 states and 21 cities/localities prohibit salary history inquiries. If your jurisdiction allows employers to ask about salaries, you have a few options for how you can answer.

Do recruiters take a cut of your salary? ›

Recruiters do not take a cut of your salary. The company the staffing agency places you at however does compensate the recruiter based on a percentage of your first year's salary if the employer and recruiting agency have a contingency agreement in place.

Are recruiters highly paid? ›

The average salary for a Recruiter in Los Angeles is $82,266. The average additional cash compensation for a Recruiter in Los Angeles is $9,717.

How to answer a recruiter question about salary expectations? ›

How to Answer, 'What's Your Expected Salary?'
  1. Research the market and salary trends.
  2. Consider giving a salary range, not a number.
  3. Diplomatically turn the question around.
  4. Now it's time to give a number, not a range.
  5. Always be truthful.
Jan 11, 2024

How do you politely say the salary is not enough? ›

I want to be upfront with you that the salary is lower than I was expecting based on my skills and experience. I'd like to be at a number more like $X. I'm really interested in this opportunity and would love to make this work with you.”

What to say when recruiter asks for minimum salary? ›

I'm looking for a competitive salary that reflects my qualifications and experience. Based on my research and the requirements of the role as I understand them, I would expect a salary in the range of $X to $Y.

What does a recruiter do on a daily basis? ›

This includes a variety of tasks: running searches of potential candidates through databases, reviewing resumes, setting up and conducting interviews, preparing job seekers for interviews with the employer (and sometimes sitting in on those interviews), following up with candidates, providing feedback, and (the best ...

How many hours do recruiters work? ›

On average, Technical Recruiters can expect to work about 40 to 50 hours per week.

Is there a downside to working with a recruiter? ›

Con: Recruiters may try to place you where you don't belong

If you are in the interview or on the phone with the company and realize this- courteously tell the potential employer that you may not be suited for the position they're hiring for with your skillset or experience.

What should you not tell a recruiter? ›

7 Things to Never Say to a Recruiter When Looking for a Job
  • How much is your commission? ...
  • I'm just casually looking. ...
  • I'll take anything. ...
  • My previous job was terrible. ...
  • I work to live, not live to work. ...
  • My old manager and I didn't get along. ...
  • It's on my resume. ...
  • Recruiters navigate the job search process for you.

How to avoid telling a recruiter your salary? ›

Even if it's legal for employers to ask in your state, it's okay to politely decline to answer. For example, "I prefer to keep my financial details private. However, I am willing to discuss a compensation package that aligns with my skills and the industry standard."

Do recruiters get paid by how many people they recruit? ›

The most common fee structure is a percentage of the employee's first-year salary. The exact percentage can vary based on market conditions, negotiations between the employer and the recruiter, and the difficulty of filling the role (e.g., more senior roles can have higher recruiting fees).

What percentage do recruiters take? ›

What Is the Average Recruitment Fee? Typical recruitment fees range from 15-25% of an employees' first year salary. For example, if a candidate is placed with a company and making $75,000, and the agency charges 20% at time of placement, the company would pay $15,000 to the agency for the placement.

Do recruiters get commission if I quit? ›

There's a clause in the agreement between the client organisation and the vendor company that states about the period for which the candidate must stay in order for the vendor to get paid. If you leave before, they don't get paid.

Are recruiters worth the money? ›

In many cases, using a recruiter to find a job can increase your chances of landing a new position. Recruiters deeply understand the job market and the hiring process, and they know what employers are looking for in a candidate. Since that's the case, they can help you position yourself as a solid match.

How many hires should a recruiter make per month? ›

On average, recruiter should be able to fill/hire around four positions per month with an average level of difficulty, or around 50 per year. An exceptional recruiter, or one working on mostly entry level positions, should be able to fill 60-80 per year.

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